AGREEMENT FOR HIRE-PURCHASE OF A MOTOR VEHICLE [CD1]
THIS AGREEMENT made
at………….this………….day of………….between A son of B resident of ………….(hereinafter
called "the owners") of the ONE PART and C son of D resident of
..........................
(hereinafter called "the hirer") of the OTHER PART.
WHEREAS
(1)
The owner is the owner of a motor
vehicle, more particularly described in the Schedule hereto and the hirer has
approached the owner to let the said vehicle on hire to him, to which the owner
has agreed and has assured the hirer that he shall have and enjoy quiet
possession of the said vehicle.
(2)
The owner has further assured
the hirer that he shall have the right to sell the said vehicle at the time the
property is to pass and the said vehicle is free from any charge or
encumbrances in favour of any third party at the time when the property is to pass.
(3)
The hirer has inspected the
said vehicle and is satisfied about the same and considers it fit for the
purposes for which he requires the same.
NOW
IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
(1) The owner will let and the hirer will take on hire the vehicle more
particularly described in the Schedule hereto.
(2) The owner has delivered the said vehicle to the hirer and has
allowed the hirer to use the said vehicle in the usual manner.
(3) In consideration of the delivery of the said vehicle to the hirer
the latter has paid in advance a sum of Rs ………….as first instalment on hire
(the receipt whereof the owner hereby acknowledges) and will punctually pay to
the owner at his place the sum of Rs…………. every calendar month by way of rent
for the hire of the said vehicle, the first payment to be made on the day
of………….and each subsequent payment on the………….day of every succeeding month.
(4) During the continuance of hiring, the hirer shall
(i)
Not sell, assign, pledge,
mortgage, underlet, lend or part with the possession of the said vehicle and
not allow the said vehicle to be used by anybody else or kept or detained or
run for the use of any other person.
(ii)
Not take the said vehicle out
of the city of………….unless he has obtained a permission in writing from the
owner in that behalf and if the owner grants permission subject to certain
terms and conditions, the hirer shall abide by all the terms and conditions
imposed in respect of such permission.
(iii)
Pay all licence duties, fees,
registration and other charges payable in respect of the said vehicle and keep
the said vehicle in a good repair condition and working order and will permit
the owner and persons authorised by him to have access to the said vehicle for
the purpose of inspecting the condition thereof. In case the hirer fails or
neglects to cause the said vehicle to be repaired or kept in a proper state of
repair, the owner shall be entitled but shall not be bound to do so, to seize
or cause the said vehicle to be seized and to get the same repaired and to keep
the said vehicle in his custody till the hirer pays the bills for repair of the
said vehicle.
(iv)
Keep the said vehicle insured
and kept insured so long as the hiring shall continue in the joint names of the
owner and the hirer against all risks and the hirer shall pay all the premiums
payable to the insurance company. On the hirer becoming the owner of the said
vehicle under the terms of this agreement, the owner will transfer to the hirer
the benefit of any insurance policy then current relating to the said vehicle.
(v)
Make good to the owner all
damages to the said vehicle (fair wear and tear excepted) and pay the owner the
full value of the said vehicle in the event of its total loss
(vi)
Indemnify the owner against
claims by third parties arising by accident caused by the said vehicle until
the said vehicle is returned to the owner or purchased by the hirer in terms of
this agreement.
(vii)
Not use or permit or suffer the
said vehicle to be used in contravention of any law for the time being in
force.
(4)
If the hirer shall duly observe
and perform all the conditions herein contained and on his part to be observed
and performed and shall pay to the owner the sum specified in clause 3 hereof,
together with all other sums if any payable by him to the owner under the
provisions of this Agreement, then the hiring shall come to an end and the said
vehicle shall become the property of the hirer and the owner will assign and
make over all his rights and interest in the same to the hirer, but the hirer
shall have the option of purchasing the said vehicle at any time during the
period of hiring by paying in one lump sum the balance of all the hire
hereinbefore mentioned and other expenses incurred by the owner. Until all such
payments as aforesaid have been made, the said vehicle shall remain the
property of the owner.
(5)
The hirer may at any time
terminate the hiring by returning the said vehicle at his own cost and risk to
the owner at his place of address for the time being.
(6)
If the hirer shall make default
in payment of any monthly sum payable hereunder for………… days after the same
have become due or shall fail to observe or perform any of the terms and
conditions of this agreement, the owner may without prejudice to his claim for
arrears of hire or damages (if any) for breach of this agreement forthwith
terminate the hiring without notice and retake physical possession of the said
vehicle himself or through his agents or servants and the hirer shall not
object to the retaking of possession of the said vehicle by the owner or his
agents or servants and/or by written notice to the hirer determine this
agreement and the hiring hereby constituted. On such termination the hirer
shall immediately return the said vehicle to the owner at his place of address
for the time being and the hirer shall pay the owner a sum of Rs………every month
until the said vehicle is returned to the owner.
(7)
No neglect, delay or indulgence
on the part of the owner in enforcing any terms or conditions of this agreement
shall prejudice the rights of the owner hereunder.
(8)
The agreement is personal to
the hirer and the rights of the hirer shall not be assignable or chargeable by
him in favour of third party.
(9)
In the event of the hiring
being determined by the hirer or by the owner under clause 6 hereof, the hirer
shall forthwith return the said vehicle to the owner at the hirer's expense.
The determination of the hiring as aforesaid shall not affect or prejudice any
claim the owner may have against the hirer for arrears of hire payments or for
damages for breach of this agreement or his right to enforce such claim by
action or otherwise.
(10)
The owner has permitted the
hirer to have the said vehicle registered in his own name in terms of the
provisions of Motor Vehicles Act, 1988 and the rules framed thereunder provided
that the hirer shall transfer such registration in favour of the owner when he
returns the said vehicle to the owner under the terms of this agreement.
(11)
The agreement shall determine
if the hirer commits any act of bankruptcy or makes any arrangement with his
creditors or on presentation of a petition in the court for adjudicating the
hirer as an insolvent or on the appointment of a receiver of the properties of
the hirer or if an application is made by any creditor or other person against
the hirer for the attachment of the said vehicle.
(12)
All disputes, differences
and/or claims, arising out of this agreement shall be settled by arbitration in
accordance with the provisions of Indian Arbitration Act, 1940 or any statutory
modification thereof and shall be referred to the sole arbitration of
Shri....................or in case of his death, refusal, neglect, incapability
to act as an arbitrator to the sole arbitration of Shri………….the award given by
the arbitrator shall be final and binding on the parties.
(13)
The parties hereby admit that
this agreement has been fully explained to them and they have understood the
meaning of all the clauses of this agreement and they have signed this
agreement with full understanding of the obligations herein.
IN WITNESS WHEREOF, the
parties have hereunto set and subscribed their hands on the date and year above
mentioned.
WITNESSES
1 Signed and delivered by the within
named owner
2. Signed and delivered by the within
named hirer
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